Large BD Fined $700,000 for Failing to Retain E-Mails
FINRA fined a large broker-dealer $700,000 for failure to retain over four million e-mails over a six-year period. Although the firm had an e-mail retention system, the system experienced intermittent failures. FINRA discovered the issue during an investigation into an employee’s misconduct. FINRA discovered that electronic files did not include an e-mail already received in hard copy. The firm had been previously sanctioned for e-mail retention issues in 2002.
OUR TAKE: FINRA views e-mail retention as a critical component of records retention and production especially for investigating misconduct.